Black & Son Company uses a flexible budget for manufacturing overhead based on direct labor hours. Variable manufacturing overhead costs per direct labor hour are as follows. Indirect materials $0.70 Indirect labor $1.00 Utilities $0.40 Fixed overhead costs per month are supervision $4,000, depreciation $1,200, and property taxes $800. The company believes it will normally operate in a range of 8,000- 9,000 direct labor hours per month. Instructions: A. Prepare a monthly manufacturing overhead flexible budget for 2020 for the expected range of activity, using increments of 1,000 direct labor hours. B. Prepare a flexible budget performance report, assume that in July 2020, Myers Company incurs the following manufacturing overhead costs and the company worked 8,500 direct labor hours during the month: Variable Costs Fixed Costs Indirect materials $5,800 Supervision $4,000 Indirect labor 8,800 Depreciation 1,200 Utilities 3,200 Property taxes 800